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Prospect News home > News index > List of issuers K > Headlines for Kaiser Aluminum Corp. > News item |
S&P rates Kaiser notes BB, view to positive
Standard & Poor’s said it revised the outlook on Kaiser Aluminum Corp. to positive from stable and affirmed its BB corporate credit rating.
The agency also said it assigned a BB rating to the company’s proposed $325 million senior unsecured notes with a recovery rating of 3, indicating 50% to 70% expected default recovery.
The positive outlook reflects expectations that favorable long-term trends in end-markets will support profitability and free cash flow generation over the next 12 months, S&P said.
The agency also said it believes the company’s recent capacity expansion at Trentwood and various upgrades at other facilities should improve operational efficiency.
Kaiser is expected to produce a debt-to-EBITDA ratio of about 2.5x in 2016., S&P said.
The agency also said it expects management to prudently manage growth and shareholder-friendly initiatives while maintaining a strong liquidity profile.
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